North Dakota Drought Disaster Livestock Water Supply Project Assistance Program

North Dakota law, under NDAC Section 89-11, provides the Department of Water Resources with the ability to provide cost-share assistance to livestock producers experiencing water supply shortages caused by drought.

The Drought Disaster Livestock Water Supply Project Assistance Program (Program) provides cost-share assistance to livestock producers with water supply shortages caused by drought. Eligible items include: new water wells, rural water system connections, pipeline extensions, pasture taps, and associated works, labor, materials, and equipment rentals for work completed to develop new water supply projects.

The State Water Commission approved a total of $4 million for eligible livestock water supply projects following the program's reactivation on August 18, 2026. The program was expanded to include eligible producers in all 53 North Dakota counties in response to strong demand. Drought conditions will continue to be monitored throughout the winter and spring.

• The livestock operation must be in the specific drought disaster counties, as specified in the Governor’s most recent proclamation, or adjacent eligible counties, to qualify for cost-share assistance through the Program.

• A “livestock producer” means an individual who produces livestock or operates a dairy farm, who normally devotes the major portion of the individual’s time to the activities of farming or ranching, and who normally receives not less than 50 percent of the individual’s annual gross income from farming or ranching.

• The applicant must be a livestock producer with livestock water supply problems caused by drought.

• The applicant must receive department approval for a water supply project. A water supply project completed before the program activation date is not eligible.

• Cost-share assistance may only be used for water supply projects that will provide a long-term and immediate solution to a drought-related water supply shortage.

• All wells drilled with funds provided through this program must be drilled by a North Dakota certified water well contractor.

• Eligible projects included: New water wells; New rural water system connections; New pipeline extensions, pasture taps, and associated works; and Contract labor, materials, and equipment rentals for work completed by the producer to develop new water supply projects.

• The following projects are not eligible for funding from the Drought Disaster Livestock Water Supply Project Assistance Program.

• Rehabilitation of an existing well.

• A water supply project on federal or state land.

• A dry hole drilled in an attempt to construct a water well or to locate a water source.

• The construction of stock dams or dugouts.

• The development of springs.

• Projects that require repair or replacement to an existing water source.

• Hours billed for work completed by the applicant, the applicant’s family, or their employees.

Livestock producers in all North Dakota counties were eligible to apply for up to $10,000 in cost-share assistance per project, for up to three projects, for eligible livestock water supply improvements.

The applicant may be reimbursed up to 65 percent, but no more than $10,000, of the eligible costs of the project. Each producer is eligible for cost-share on up to three projects. Labor and materials paid for on, or after August 18, 2026, are eligible for reimbursement.

Cost-share payments made through this program can be considered taxable income. Successful applicants will need to submit IRS Form W-9 upon completion of their projects before program reimbursement can be made.

The applicant shall agree to:

• Complete the project within one hundred eighty days of receiving funding approval notification. The department may grant a time extension if a written request providing just cause is submitted.

• Provide actual expenditure receipts.

• Grant the department or its agent the right to enter the land to inspect the completed water supply project after giving reasonable notice to the applicant.

Applicants are required to submit to the Department of Water Resources (DWR):

1. A cost-share assistance application;

2. A map and/or aerial photo of the project area showing proposed works; and

3. An estimate of project costs.

The state will fund the program to the extent funding is available. Priority for funding will be based on earliest date of application received.

Funds will only be disbursed for water supply projects in counties that the governor has declared to be a drought disaster area for purposes of this program. The commission will determine the program's beginning and end dates.

All available program funding has now been committed, and DWR is no longer accepting new applications.

Program Brochure (PDF)

Program Administrative Code, NDAC 89-11-01 (PDF)

North Dakota Rural Water Districts & Association Map (PDF)

North Dakota Certified Water Well Contractors List

North Dakota Livestock Drought Resources (NDSU)